DOWN PAYMENT ASSISTANCE PROGRAMS
It is common that first-time homebuyers can afford a monthly mortgage payment, but find it challenging to save enough money for down payment and closing costs. Montana Housing down payment assistance programs can reduce the amount of up-front cash needed to purchase a home.
To obtain down payment assistance from Montana Housing, the borrower must first be eligible for a Regular Bond Program Loan. An approved participating lender will qualify the buyer, determine how much down payment and closing cost assistance is needed and help the buyer select a Montana Housing home loan that is best. Some homebuyers may be able to borrow the entire minimum required down payment, plus all or a portion of the closing costs.
Bond Advantage Down Payment Assistance Program
- Can be used for down payment and closing cost assistance
- Available for up to 5% of sales price, maximum $15,000
- Requires a Montana Housing 30-year first mortgage, both loans have the same fixed rate
- 15-year amortizing loan with low monthly payments
- Minimum credit score of 620 for all borrowers
- Homebuyer Education is required
- Borrowers must provide a minimum of $1,000 cash investment in the purchase. Borrower’s contribution can be gifted.
MBOH Plus 0% Deferred Down Payment Assistance Program
- Can be used for down payment and closing cost assistance
- Available for up to 5% of sales price, maximum $15,000
- 0% second loan, no monthly payments
- Due upon transfer/sale of property or refinance/payoff/of first loan
- Requires a Montana Housing 30-year first mortgage fixed rate loan
- Household income limit $80,000 for 1-2 ppl and $90,000 for 3+ ppl
- Minimum credit score of 620, maximum Debt-to-Income (DTI) of 45% for all borrowers
- Homebuyer Education is required
- Borrowers must provide a minimum of $1,000 cash investment in the purchase. Borrower’s contribution can be gifted.